Research On The Causes And Effects Of Hepalink’s IPO Over-raised Funds

Since the IPO was restarted in 2009,the phenomenon of over-raising in IPO has attracted widespread attention in the capital market.In order to solve the problem of serious over-raising in IPO,the China Securities Regulatory Commission issued relevant policies in 2013 to adjust the relevant regulations for IPO.Recruitment gradually decreased.In recent years,with the smooth implementation of the registration system on the Growth Enterprise Market and the Science and Technology Innovation Board and the implementation of the new regulations on the inquiry mechanism for IPO in 2021,the phenomenon of over-raising of IPO has returned to the capital market.Therefore,it is particularly important to study the causes and effects of over-raised funds from IPO of listed companies.The core problem of this study is the causes of over-raised funds in corporate IPO and the effect of the use of over-raised funds.Using the normative research method and case analysis method,select Hepalink,a company that has obtained a large amount of over-raised funds when it goes public and has a clear investment direction for the over-raised funds as the case study object.When analyzing the causes,it mainly analyzes from four aspects: the system level,the company level,the investor level and the sponsor organization level;when analyzing the use effect,first analyze the financial performance of the company after obtaining a large amount of over-raised funds,and then further analyze the over-raised funds.The impact mechanism of funds on corporate financial performance,and finally the impact of over-raised funds on corporate non-financial performance.The study found that the defects of the new stock inquiry mechanism,the promotion at the company level,the irrational investment of investors and the interest drive of sponsors,etc.,will lead to inflated stock prices,and the main reason is the promotion at the company level.In terms of use effect,the use of super-raised funds for equity investment by Hepalink will help improve profitability and potential future growth,bring about the improvement of international competitiveness and achieve non-financial effects such as diversification of operations;while the use of super-raised funds to supplement liquidity Funds will lead to the decline of the company’s operating ability and solvency.The main reasons are that the company does not pay attention to the management of working capital due to the large amount of free cash flow brought by over-raising,and the second is the existence of tunnel behavior of controlling shareholders.Theoretically,through case analysis,this paper explores the causes of over-raised funds in corporate listings,deeply studies the impact mechanism of over-raised funds on corporate financial performance,clarifies the effects of over-raised funds,and supplements the research on the causes and effects of over-raised funds.In practical applications,paying attention to the causes and effects of over-raised funds can remind investors to invest rationally,and at the same time attract the attention of regulators,revise and improve relevant laws and regulations on over-raised funds as soon as possible,and maintain the healthy and orderly development of the capital market.